We saw in part one how to get your repossessed car back. In part two we will see what happens if you chose to give up a repossessed vehicle and how bankruptcy can help.
Go Ahead and Take it!
What if you can't afford the back payments and all of those extra fees? Even if you could, what if you just don't want the car back anymore?
Your debt is going to end up on your credit report, and I'm willing to bet it's going to be a lot larger than you expect. Here's why.
You already owe the back payments and extra fees, and now the lender is going to auction off your car, and it is going to be for an extremely low wholesale price. Chances are you already owed more on the vehicle than what it was worth, and now they are going to sell it for far less than what it is worth. Guess who gets to make up the difference. You do!
This debt will stay on your credit report, and if you don't attempt to pay it off, there is a good chance it will turn into a judgment. After the creditor gets a judgment, they likely will attempt to garnish your wages. Once your wages are garnished, they will continue to garnish each and every check you receive until they are paid in full, including the back payments, impound fees and repo costs. The only two ways to stop the garnishment before your debt is paid off are to quit your job or file for bankruptcy.